1. Rates are part of our game.
We are in the business of lending money. Whenever people borrow money, they are concerned about the interest rate that drives their monthly payment. (Wouldn’t you be?) Accept the fact that you will win some deals and lose some deals because of rate. Deal with it and get over it.
2. Be consumed with rates and rates will consume you.
Some lenders are obsessed with the market and the interest rate environment. That’s all they talk about and think about. They believe that it’s all about rates, and so, that’s all they sell. Shift your mindset and open your eyes. Realize that there’s so much more to this business than just rates.
3. Don’t exaggerate your losses.
Just because you lose one deal to a competitor with a better rate, don’t start saying: “I’m getting killed out there! Our rates are not competitive!” You lost one deal and one loan. You are hardly being “killed” out there.
4. Stop doing transactions, start building relationships.
The stronger the client relationship or referral, the less rates will become a factor. Those lenders that get the lion’s share of their business from strong relationship referrals are less likely to get shopped for rate. If your doctor told you that you needed some minor surgery and he gave you the name of a good surgeon who has helped many of his patients, would you shop that surgeon for his rates? I doubt it. The referral was from someone you trust, and that’s more important to you than saving a few bucks.
5. Keep selling.
The market moves in cycles, as do company interest rate positions. Today your rates may be a little higher than others. In a few weeks, they may be the same or better. Sell through the cycles! Don’t pull back because you don’t feel your rates are good enough. That’s certainly not going to help! Make contacts, present programs, services, conveniences, and the best rates you can, and keep going!
